"The World Bank on Monday estimated economic growth in developing countries of 1.2 percent this year, and said that without China and India, output would shrink 1.6 percent....The development lender's preceding forecast, published in late March, put developing countries' annual growth at 2.1 percent, and at zero if China and India were excluded...." [Agence France Presse (6/22)/Factiva]

Jiji Press adds that "...the global economy is expected to shrink 2.9 percent in price-adjusted real terms in 2009, the biggest decline on record, the World Bank said.... The global gross domestic product will return to positive growth in the following years and projected a rise of 2.0 percent for 2010 and that of 3.2 percent for 2011...." [Jiji Press (Japan, 6/22)/Factiva]

The FT writes that "...in its annual Global Development Finance report, the World Bank expects private capital flows to developing countries to fall by almost three-quarters this year to $363 billion from a $1,200 billion peak in 2007. The drop in credit flows will undermine investment in emerging and developing economies, it says, with a consequent hit on rich country exports of capital-intensive goods - one of the sectors hardest hit in the global recession...." [Financial Times (6/22)/Factiva]

The Guardian adds that "...there is also little chance of overseas aid payments by rich countries taking up the slack left by the drop in private capital flows.... 'To prevent a second wave of instability, policies have to focus rapidly on financial sector reform and support for the poorest countries,' said World Bank Development Prospects Group Director Hans Timmer...." [The Guardian (UK, 6/22)/Factiva]

The BBC reports that "...World Bank Chief Economist Justin Lin said: 'Developing countries can become a key driving force in the recovery, assuming their domestic investments rebound with international support, including a resumption in the flow of international credit.' The weakness in the developing countries after recent years of growth also heightens the risks of social unrest, the Bank said...." [BBC News (6/22)/Factiva]